Fibonacci Retracement - Fibonacci Retracement Review
Fibonacci retracement tools are mostly used by forex traders that utilize technical analysis to establish support and resistance levels in the market. It is frequently applied to traders forex trading strategy.
Fibonacci retracements are based of a series of numbers that were found by the famed thirteenth century mathemetician, Leonardo Fibonacci. A retracement is achieved by selecting two points, commonly a high and low point in the price and dividing them by certain fibonacci ratios. These ratios are 23.6%, 38.2%, 50%, 61.8% and 100%..
If plotted on a financial charts, the ratio lines will be drawn automatically. The lines that represent the ratios can be utilized as areas of support and resistance. No one can clarify why this is so. Because they ultimately work, they are commonly used by a wide range of technical traders.
This instrument is used in all major financial markets ranging from the forex market, stock market and the futures and commodities market. Fibonacci confluence is a strategy that was created by some traders looking to make fibonacci retracement more effective. Fibonacci confluence is a method that requires the plotting of two or more fibonacci retracements on the same instrument. Multiple retracements are plotted from the same starting point while they end at different areas of resistance.
Areas which are found to have more than one ratio line are considered areas with strong support or resistance. These areas are commonly marked for reference during trading.
Fibonacci retracements are not normally used as a stand alone tool. To make them more effective, they are utilized with various other indicators. Used in tandem with other indicators in a strategy, fibonacci retracements are a reliable tool that are not often ignored when opening a trade. - 23217
Fibonacci retracements are based of a series of numbers that were found by the famed thirteenth century mathemetician, Leonardo Fibonacci. A retracement is achieved by selecting two points, commonly a high and low point in the price and dividing them by certain fibonacci ratios. These ratios are 23.6%, 38.2%, 50%, 61.8% and 100%..
If plotted on a financial charts, the ratio lines will be drawn automatically. The lines that represent the ratios can be utilized as areas of support and resistance. No one can clarify why this is so. Because they ultimately work, they are commonly used by a wide range of technical traders.
This instrument is used in all major financial markets ranging from the forex market, stock market and the futures and commodities market. Fibonacci confluence is a strategy that was created by some traders looking to make fibonacci retracement more effective. Fibonacci confluence is a method that requires the plotting of two or more fibonacci retracements on the same instrument. Multiple retracements are plotted from the same starting point while they end at different areas of resistance.
Areas which are found to have more than one ratio line are considered areas with strong support or resistance. These areas are commonly marked for reference during trading.
Fibonacci retracements are not normally used as a stand alone tool. To make them more effective, they are utilized with various other indicators. Used in tandem with other indicators in a strategy, fibonacci retracements are a reliable tool that are not often ignored when opening a trade. - 23217
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Fibonacci Retracement plus additional regularly applied Forex Indicators are just some of the topics detailed on the authors forex related hub.
posted by X - Men @ 9:34 AM
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